More than 7 in 10 Quebecers are worried about the current economic situation: new survey

The Canadian Federation of Independent Business (CFIB) revealed the results of a Léger survey that was carried out among Quebecers about the economic situation and budgetary measures in Quebec.

It showed that 72 per cent of respondents are worried about the economy to the point where two in five Quebecers (37 per cent) fear losing their job or that people around them will lose their jobs.

“This apprehension stems from the slowing economy, job cuts made by large companies and small business closures,” according to a press release.

Nearly eight in 10 Quebecers (79 per cent) believe that the government should include small and medium-sized businesses at the center of its economic policy.

Also, 62 per cent believe that small and midsize enterprises (SMEs) should be favored rather than large companies for an economic recovery.

“This Léger survey reveals the concern of the majority of the population about the economic situation in Quebec. According to them, economic recovery clearly passes through SMEs,” declared François Vincent, vice-president for Quebec at the CFIB in a press release. “This is very wise when we know that SMEs employ 2.25 million people. Also, the vast majority of businesses are small, and those with fewer than 50 employees represent more than 95 per cent of businesses in the province. SMEs are the heart of our economy.”

The survey also revealed that 72 per cent of Quebecers are against the use of public funds to grant large subsidies to large businesses, while 33 per cent completely disagree.

These results coincide with the position of SME managers, with 66 per cent against using public funds to grant large subsidies to large companies.

Furthermore, the province’s disadvantageous tax environment for SMEs is less popular with entrepreneurs and the population because payroll taxes are 30 per cent higher than the Canadian average and eight provinces have a reduced tax rate for small businesses which are currently lower than here.

“Additionally, Quebec is the only Canadian province that blocks access to the reduced tax rate for small businesses in the construction and services sectors, with a higher tax rate of 259 per cent.”

The CFIB has been campaigning for years to abolish these large taxes, but this request is now being supported by the population.

A strong majority of Quebecers (71 per cent) believe that SMEs, regardless of their economic sector, should have access to a lower tax rate on profits than the largest companies.

“It is time for the government to put SMEs at the heart of its economic strategy. It will not succeed if it continues to overtax its smallest businesses and if it maintains such heavy payroll taxes. We hope that the Quebec Minister of Finance will hear the message sent by Quebecers and leaders and will begin a new pro-SME chapter in his next budget,” concludes François Vincent.

The Léger Web survey was carried out to 1,001 Quebecers who could speak French or English with data collected from Jan. 19 to 22, 2024.